One of the more powerful anti-gambling voices in Texas has crafted a "to-do" list for next year's legislative session, which suggests there might be possible legislative action against prediction market operators brewing in the Lone Star State.
- Texas Lt. Gov. Dan Patrick has directed a Senate committee to study prediction markets as part of efforts to close gambling loopholes ahead of the 2027 legislative session.
- Lawmakers will examine how prediction markets may exploit federal law to bypass Texas gambling restrictions, including bets on elections and other events.
- The move signals likely legislative pushback that, if successful, could significantly impact prediction market operators, especially in a large state without legal sports betting.
Lt. Gov. Dan Patrick issued “interim charges” for Texas Senate committees last week.
Those charges, Patrick said, are for committees to study up on before the state's next legislative session begins in January 2027.
The State Affairs Committee's homework will include thinking about “closing gambling loopholes.”
Patrick wants the committee to “study the sudden inundation of prediction market gambling and the exploitation of federal law to circumvent Texas gambling prohibitions by allowing users to place bets on the outcome of elections and other events,” the charges say.
Committee members will also be expected to “examine the relationship between federally regulated derivative markets and state-prohibited gambling” and ultimately “make recommendations to ensure the integrity of Texas elections and Texas sports.”
My statement announcing 2026 Interim Charges to the Texas Senate.
— Office of the Lieutenant Governor Dan Patrick (@LtGovTX) March 27, 2026
To read the interim charges, click here: https://t.co/KtW2BUX7Rx#txlege pic.twitter.com/9fMdjiXvMX
The marching orders from the president of the Texas Senate make it look likely that prediction market sites will see some proposed legislative pushback out of the Lone Star State next year.
It’s something the federally regulated exchanges should be used to by now, as, among other prediction market updates, their “yes/no” style of wagering on sports, politics, economics, and more is increasingly attracting attention from state regulators and lawmakers.
Still, Texas, the second-most populous state in the U.S., is a few degrees of magnitude more significant for prediction markets than less populous jurisdictions like Nevada, which is seeing some success in its legal fights against the exchanges.
A crackdown would cost Texas prediction markets significant trading volume, especially since the state lacks legal sports betting.
See you next year
The lieutenant governor has been one of the obstacles to legalizing sports betting in the Lone Star State, and his charges to the Senate committees suggest he is skeptical of prediction markets as well.
Patrick is running for another four-year term this fall and clearly expects to be successful in his bid.
“When the 90th Regular Legislative Session begins in January 2027, the Texas Senate will move quickly to address these priorities, and many more,” Patrick said in a press release announcing the interim charges.
